ICmarkets

Interesting price action on the Loonie.

FX:USDCAD   U.S. Dollar / Canadian Dollar
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Weekly Timeframe: The weekly timeframe shows that a major weekly supply area at 1.1806-1.1473 has recently been breached. As a result, the path north towards a major weekly swap level lurking just above at 1.1893 is likely clear.

Daily Timeframe: Yesterday saw the USD/CAD strongly close above 1.1800, which – like the weekly timeframe has likely cleared the path north for price to test the aforementioned weekly swap level. In the event that price retests the 1.1800 handle as support before hitting the weekly level, this would then provide us with a nice base, and target in which to trade. Let’s see what the 4hr timeframe has to say about this.

4hr Timeframe: For anyone who follows our analysis on a regular basis, you may recall us mentioning we were short the USD from a confirmed trade seen on the 30 minute timeframe (1.18034) at around 11.30am GMT time on Monday. This trade provided us with a tidy profit, but however did not reach our first target, which we admit was a little ambitious considering the strength of the USD at the moment.

The 4hr timeframe shows much the same as the daily timeframe with only a small (but crucial) difference. We mentioned in the daily timeframe that if price retested 1.1800 as support that this could be a nice base in which to enter long from. Looking at the 4hr timeframe suggests price could very well ignore the 1.1800 level altogether, and trade directly towards a 4hr demand area seen below at 1.1730-1.1749 before rallying towards the weekly swap level mentioned above (as per the blue arrows).

Current buy/sell levels:

• Buy orders: Flat (Predicative stop-loss orders seen at: N/A).

• Sell orders: Flat (Predicative stop-loss orders seen at: N/A).


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